Abdul Majeed

MBA-CS- #3

LEGO

Corporate Strategy

.
Case Questions

1. Pastel Analysis and any identify key factors.

Pastel define Identify Reasons Counter (Strategies)
Political Giant Political  Management
 Government multination’s factors has should need
regulations. may impact the greater to be
the Lego in influences of proactive
 Employment order to the existing while setting
laws. expansion practices of any type
 Taxation from a state the businesses strategic
policy. to state such and can be objectives
 as: NAFTA, the
EU etc. threatening to
their future
endeavors as
well.
Economical Growing Because the
 Economic economies Lego is
growth. and prducing the
additional tax gaming toys
 Interest rates. rates. than to
High expose deliver it to
 Inflation and risk of other
currency currency Godtfred to
exchange which caused the buyers
rates. the and suppliers
companies at once so
dip into the change in any
dust such of the
 scenario of economic
2008. indicator will
impact the
organization
overall.
Social  Age As Lego’s Like person
 Demographics. customer living first
 Lifestyle base are world has the
 Growth mostly child greater
and their chances to
 Attitude preference avail the
have been offerings of
 Age changed by the Lego.
time to time
 Demographics.
so its going
 Lifestyle
to be
 Growth potential
barrier.
 Attitude
Technologica Technology Because in
l have changed late 2000 the
the customer internet dot
by a big com boom
 Innovation. margin so has affected
producing the business
according to transactions
 Invention latest trend very
will have to effectively.
 Investment be adopted. So, Lego can
incentives used internet
as way to
attract a wide
 Rate of range of
technological customers.
change.
 Research and
Development.

Legal Information
 Litigations technology
 Non-obvious services
commands by litigations
apex courts such as
 Contracts legally
 Partnerships allowing
  Law suits specific
 Patents SKUs.

2. Analyze the changing industry structure in which Company is operating by using Porter’s
Five Forces Model. How did Company counter the changes and challenges of the industry
competitive forces in which Company is operating by using Porter’s Five Forces Model?
Five Who They Are Level of Reasons Counter
Forces Threat/Bargainin (Strategies)
g Power
Threat of  New comers Moderate to High Go for forward
New  Now  Greater and vertical
entrants. opportunities customer integrations.
 New base and
Innovative higher
coverage as
compare to
the
traditional
retailing
Bargainin Moderate to High  Industry at
g power  Innovation the growth
of costs so there are
suppliers  After sale few of
services suppliers
and with
fewer
options
those who
can give
them an
opportunity
to put their
SKUs- to
Mattel and
Hasbro and
to others.
Bargainin  Switching costs Moderate to High  Considerabl Related
g power  Undifferentiate e number of diversificatio
of Buyers d products alternate. n via offering
 Supply and  Less cloud
Demand customer services and
involvement 5G offers.
 services.
 One stop
shops
Threat of  Related Moderate to High Increasing social Offer related
substitute products and technological products and
products  Substitutes involvement in services.
 Price decision making
comparisons platform who can
offer the services as
well.
Intensity  Existing Moderate to Industry is in need to
of Rivalry competitors High. growth phase so conglomerate
 Industry there will be the its offering
growth high rate of rivalry. with other
 Costs On price, services, industry
after sale services customers
etc. segment as
well.

3. What is the SWOT analysis of Lego?

Answer:
Identify Counter (Strategies)
 Lego has greater
opportunities for sale in
Opportunities: emerging economies They need to move to the
such as India and economical sovereigns for
China. manufacturing facilities to get
 Low cost labor and cost leadership strategy.
material states.
 Robust brand identity
Threats: . So, in this orderLego need to
 Inconsistent technology diversify the industry.
 Me too products
  Chinese manufacturers
 Extreme competition
from online gaming and
so on.

 Robust brand name

 Ability to invest in
capacity expansion for
technological
production
 Additional services can
 A wide number of
Strength: merge its customers a
patents
lot
 Store presence and
Robust finance
 Interlinked operations
of Customer Service
and Distribution Centrs.

 Incompatibility
operations with
Weakness: environment
 Higher prices than the
Hasbro and Mattel.
 Innovate operations on
regular basis
 Below prices at least to
competitors level.

4. How is the Company using its resources and capabilities to get competitive advantage and
why is it so successful in it?
Answer: Lego has diverse set of resources having specialty in operating system they have
integrated their core resources with other manufacturers with spending a little on R&D.

5. Describe Company Business strategy?

Answer: Lego follows the growth strategy throughout USA so Lego should have to carry the
differentiation strategy in order to successfully carrying it to its target customers. They used to
offer additional features in their set of products and services-specially.

6. Who are Company’s competitors?

Answer: Lego has strong competitors at each of its offerings. Including e-retailing, cloud
services and digital advertisement – Lego have Hasbro, Mattel and Vtech store different special
service providers as competitors respectively.

7. What is the purpose of Company’s value chain?

Answer:
Inbound Logistics- Lego has at least one main supplier adding with others in use of different
commodities and more specifically in 3d painting.
Operations- Lego used to perform operations while looking at the market demand and
availability of core raw material including plastic patents and painting patents.
Outbound logistics- Lego sales mostly taken place usually (throughout the year) but it varies in
seasons as well. In holiday and different event they sales largely than usual. Lego sales with
having contracts with premium services of DHL and others.
Marketing- Lego identify its marketing efforts with the help of brand value and its availability in
stores and traceable shops. Lego also market itself while incorporating in different movies and
TV shows.
9. what is the core competency of Amazon company?

Answer: The core competency of Lego is its variety in products development, innovative

production pattern are its typical proficiencies. These competencies consent lego products more
lucrative, and separate those products from its competitors there for their products are known as
matchless.